§ 15-71-116 - Annual fee assessment.
15-71-116. Annual fee assessment.
(a) (1) The Oil and Gas Commission shall establish by rule a fee structure to be paid annually by well operators of only those wells producing liquid hydrocarbons.
(2) The date for payment of the first annual fee assessment shall be determined by rule.
(3) All annual fees collected shall be deposited into the Abandoned and Orphaned Well Plugging Fund.
(b) (1) All bonds or other financial assurances in effect on August 12, 2005, shall remain in effect until released by the commission from obligation through payment of the initial fund fee assessment under this section.
(2) (A) Additionally, a person shall file and maintain with the commission the amount of financial security required under this section for two (2) consecutive calendar years of payments to the fund until the required payments have been made if the person is a well operator who:
(i) Did not operate a well before August 12, 2005; or
(ii) Has not after August 12, 2005, made annual payments to the fund for at least two (2) consecutive calendar years preceding an application to drill or transfer wells.
(B) (i) When the operator has made the required payments, the financial security shall be released.
(ii) However, the financial security shall not be released under subdivision (b)(2)(B)(i) of this section if the commission has filed a claim against the financial security instrument.
(c) (1) Fees shall be assessed for each calendar year, commencing on a date to be established by the commission, for all wells of record on January 1 of each year and each subsequent year.
(2) The fees assessed by the commission under this section are in addition to any other fees required by law.
(3) All fees assessed under this section shall be submitted to the commission no later than sixty (60) days after the date listed on the annual fee assessment letter sent to the well operator.
(d) All the fees assessed and collected by the commission each year under this section shall be deposited into the fund.
(e) If a well operator is delinquent for more than sixty (60) days in the payment of fees assessed under this section or if amounts have been expended from the fund to plug, repair, or restore an operator's well or well site, no further permits may be issued to that operator, and the commission may issue an order to cease production of that operator's current wells until all delinquent fees and expended fund moneys have been repaid to the fund.